Trumps tariff chaos, briefly explained
www.vox.com
This story appeared in The Logoff, a daily newsletter that helps you stay informed about the Trump administration without letting political news take over your life. Subscribe here.Welcome to The Logoff. Donald Trump paused military aid to Ukraine on Monday night, a freeze that would fully undercut Ukraines position ahead of planned peace talks with Russia. Well keep tracking that conflict, but today Im focusing on the chaos surrounding Trumps on-again, off-again tariffs. To be clear, theyre still on for now. And if they stay on, they will have major impacts for the global order and for your finances.Whats the latest: Trump hit Canada, Mexico, and China with new tariffs Tuesday. Importers will now pay a 25 percent tax on Mexican and Canadian products (10 percent on Canadian energy). Trump also increased tariffs on goods from China from 10 percent to 20 percent.Canada already responded with 25 percent tariffs on certain US goods, China announced retaliation against US farm goods and tech companies, and Mexico is promising to respond in the coming days. Whats next? Dear reader, I wish I could tell you. At noon, Trump threatened to further increase tariffs on Canadian goods as a punishment for their retaliation. But later this afternoon, Trumps commerce secretary said that relief for Mexico and Canada could see their tariffs reduced though probably not eliminated as soon as tomorrow. (My colleague Andrew Prokop broke down two major questions about whats next for Trumps tariffs here.) How would a trade war affect me? If the tariffs persist, expect to pay more for a long, long list of goods everything from gas to food to new houses as importers pass on the taxes to consumers. And if the trade war escalates, expect prices to keep climbing along with it.What does this mean for the world? If the tariffs stay in place (or escalate), it threatens to unwind a global system of free trade, replacing it with a renewed push for protectionism. If Trump changes course tomorrow and dials back tariffs on Canada and Mexico, it may limit the economic damage, but it will have further strained ties with two of the countrys closest allies. Well keep you posted.And with that, its time to log off. Yes, you genuinely can log off of politics for the day. I know Trump is giving a big speech tonight, but well recap it tomorrow morning on Vox. With the time you save, might I suggest you watch the Oscar-winning live-action short film? Im Not a Robot is a 22-minute gem thats ultimately about what it means to be human. I wont say any more than that, but I hope you enjoy it. Ill see you back here tomorrow.See More:
0 Comments ·0 Shares ·53 Views